FAPSX

About FAPSX

Fidelity Risk Parity Fund is a mutual fund designed to provide investors with broad diversification and an alternative to conventional portfolio structures. Its primary objective is to seek total return by employing a "risk parity" approach, which strategically allocates risk, rather than capital, across multiple asset classes such as equities, fixed income, commodities, and inflation-protected securities. The fund utilizes quantitative analysis to balance exposure across four key macroeconomic factors: growth, inflation, real rates, and liquidity. By diversifying risk across these factors and a range of statistically identified market regimes, the fund aims to achieve more robust diversification potential relative to a traditional 60% stock/40% bond portfolio. Managed by Fidelity, the fund invests in a mix of affiliated and unaffiliated mutual funds and ETFs, dynamically adjusting allocations to respond to changing economic and market conditions. Its approach is particularly relevant for investors seeking alternative strategies to enhance portfolio resilience and reduce reliance on any single source of market return.